Although the prices of Bitcoin and Ethereum have barely changed this week, cryptocurrency markets have continued to move sideways. Despite the trading volume and momentum in the cryptocurrency market grew yesterday, there hasn’t been any price movement so far today. The general cryptocurrency market cap is $927 billion, Bitcoin is still trading in the $19,000 region, and Ethereum is trading at $1,300. Let’s examine notable news this week that is affecting markets.
Summary:
- This week’s trading on the cryptocurrency market has been largely horizontal with little volatility.
- Over $740 million worth of Bitcoin recently left exchanges. This is a bullish indication that traders are preparing to hold BTC for an extended period of time.
- Shanghai, the upcoming network update for Ethereum, has already been tested and is anticipated to launch in 2023.
- The market is in extreme fear as measured by the fear and greed index, but the low volatility and strong trading volume are encouraging signals for the market’s future.
Crypto Market Update
The day’s most important news is an article from Cointelegraph that focused on a fascinating statistic. More than $740M in Bitcoin left exchanges, which is notably the biggest outflow since June’s Bitcoin price crash.
“The amount of Bitcoin flowing out of cryptocurrency exchanges picked up momentum on Oct. 18, hinting at weakening sell-pressure, which could help BTC price avoid a deeper correction below $18,000.”
It is a bullish sign that many Bitcoins are leaving exchanges since it suggests that traders and holders may be planning to retain BTC for a long time. Users typically prepare to put their tokens into cold storage or on hardware wallets when they remove their cryptocurrency holdings from exchanges.
The reduced market volatility, which gives traders more confidence to open long-term positions, is probably the driving force behind users migrating cryptocurrencies like Bitcoin off exchanges.
Ethereum’s Post-Merge News Update
Ethereum is already getting ready for Shanghai, its upcoming significant upgrade. According to a Coindesk story, Ethereum’s Shanghai testnet is currently operational and will allow developers to test the implementation of staked Ether withdrawals and other features for the next stage of ETH development.
For those who are unaware, staked ETH cannot currently be withdrawn, but the upcoming network update will allow for staked Ethereum asset withdrawals.
Don’t get your hopes up just soon; there isn’t a set date for the upgrade as of yet; it is expected sometime in 2023. Ethereum’s Shanghai update, the first following the September merging, will mark yet another important turning point for the network.
Final Thoughts
The current Bitcoin fear and greed score, which is 22 points, is still in extreme fear regarding market sentiment. The index is up two points from yesterday despite being significantly lower than last month, which indicates the market is still bearish.
The good news is that after yesterday’s rise in trading volume, it has remained largely unchanged, with BTC’s 24-hour volume only declining by 0.61% and Ether’s by 6%.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
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